According to reports, European countries have found a common ground and have agreed in principle to impose a ban on Iranian oil in order to show a united stance amid growing tensions with the Islamic republic's government.

Iran is suspected of covertly developing nuclear weapons, a charge it denies and maintains that it has the right to harness civilian nuclear energy for generating power. A final decision on the ban of Iranian oil is expected to be taken before the end of January and will be enforced in planned phases in order not to disrupt global oil supplies.

The combined tough stance is to force the Iranian authorities to stop enriching uranium and negotiate with the western powers to end its efforts of developing fuel for an alleged nuclear weapon.

Iran has responded to the threat of sanctions with a series of military and diplomatic threats including closing the Strait of Hormuz. It test fired new missiles and also announced the production of its first nuclear-fuel rod. The country has also warned against the return of an American aircraft carrier to the Persian Gulf.

Iran's threats aimed at the western countries as well as Israel as well as an indication from the International Atomic Energy Agency that Iran's nuclear program is for military purpose, has built up opposition toe the regime in the west. However, the embargo could backfire if Iran's major imports do not align themselves with the western countries.

European Union official have said that the countries have overcome opposition to the ban but are yet to agree on a formal agreement to impose the ban on oil from the country